|2eap
05-18-2015, 07:54 PM
Interesting read as well, even if you aren't interested in selling
People may be wondering; "Why would you tell other people how to sell? Your creating direct competition with yourself?!?"
Many sellers and buyers alike do not understand some of the terminology and the real logistics behind running your own business and how to GROW verses MAINTAINING.
Before we begin;
What exactly defines a business?
It is not a business title, I can tell you that much. ANYTIME you ACCEPT money for YOUR SERVICES, you are conducting business.
Okay, so I'm technically running a business. Why does that matter?
Because, this IS a business. You do not buy from unprofessional business's do you? You have another person's hard earned cash in your possession, they are putting their TRUST in you. You do not trust unprofessional business's right?
So why all professionalism on the forums?
Uh hello! Any successful business knows that forums are one of your #1 marketing tools. If setup properly, you can market and maintain a full forum based ecommerce store FOR FREE. Yes, you have an opportunity to run a business FOR FREE! ANDDDD all of your visitors are already targeted traffic customers! No marketing really needed.
You do not need an official website to run a legitimate and official business. With creating a website, keep in mind your competition. No one started making piles of money over night. Neither will you, put in the work to MARKET and RETAIN your customers.
Let's begin with these terms;
Growth vs. Maintaining
Growth is self explanatory. When you work on your business growth you are working its overall success. Maintaining is when you setup your shop, and do not care about your growth. Maintaining is general lower prices than others, VERY limited stock, they are constantly "chasing stock". Meaning they capture the payment, then "chase" for the stock. This is not how your business can grow if you're too worried about the quick money.
Targeted vs. Non-Targeted Traffic
Targeted traffic is traffic that you make the effort to reach out to. This traffic are customers who have the highest conversion rates. These customers are the ones who were already interested in what you are selling. When you get non-targeted traffic this would be spamming forums, ranking for generic non-niche specific keywords. Ex; Neopets vs Buy Neopoints
Generally your supermarkets and convenient stores are non-targeted. They don't really care, they have a little bit of everything for everyone.
ROI (Return on Investment) vs Profits
This is something that is very misconcepted with Profits. If you make a purchase with CASH (no loans or debts) you are profiting from the very get go as long as you are selling your product, and your cost of running business is less than these factors; what you are making and cost of marketing. However, in a more logical standpoint your still in the hole because you made that investment on stock. This is called ROI. Both of these fall hand and hand, if your profits are minimal, it will take your longer to reach your ROI. Meaning if it takes you whole month to make your money back, then whats the point? RAISE YOUR PRICES. Use targeted traffic to get customer to PAY THESE PRICES.
Price vs Profits
A very common rule in the ecommerce rule is marking up your items 300% of what the wholesale cost was. This is THE ONLY way to make money and make it worth it.
If you buy 1,000 units of stock for $1 and then turn around and sell for $1.50 your profits are MINIMALISTIC. and your ROI may not be met to meet your needs. You now have to FIND & CONVINCE 1,000 customers to purchase your product, and that its better than everyone elses. For all that time and money you only made 500 dollars from 1,000 transactions. Thats HORRIBLE.
By keeping it 300%, in theory, for every $1,000 spent on stock you will make $2,000 over your ROI. If you bought it all with cash you made $3,000 Profit with a $1,000 ROI.
Finding your niche & setting up your sales pitch;
So you wanna start selling, but everyone and their brother here sells. Well you have to be unique, what sets you apart from the rest? This is going to be your sales pitch. If you are in a specific niche, and provide the best services in that niche, you can charge more than the underdog.
Why is that?
Because customers want quality and reliability. This is the first step in maintaining customer loyalty. Why do you only buy certain brands of clothes, food, accessories? It's the same concept. Psychology at its finest. When you buy things for yourself, or if others buy things for you. You want them/yourself to buy something with quality.
Why is that?
Because you think you deserve the best, that's why. And so do your customers. So give them THE BEST.
Uh |2eap, this doesn't help me figure out what i'm going to sell...?
Sure it does, are you the best at something? Do you consider yourself the best at something? Do you want to become the best at something? What can you do that stands out from the rest?
This is your niche, if you specialize in neopoints... sell neopoints. Studies have shown, customers don't tend to shop around anymore once they have found a quality and reliable service. If you try to do too much, where's the quality?
|2eap, I'm not really the best at anything bro. What can I do?
Work towards becoming the best. Besides you most likely have other qualities that others do not have. For example my instant delivery services I have started up. A form of targeted traffic for me would be foreign members. Members who are online when cK is the most inactive. These customers have to wait a day or more to get responses from sellers. So for a slight upcharge, they can rid that burden and enjoy their purchases like everyone else in the same timly manner that everyone else gets. All of our customers deserve the same treatment from the start. No favorites.
So theres my example, can you figure out your own niche now? Maybe your foreign and online during those hours and can deliver at those times. You can then undercut me targetting the same traffic. Keeping in mind though, every action has an equal and opposite reaction. If you lowball another seller, who says they won't low ball you back until it's a stalemate? That is NOT how to conduct business. As mentioned before your customers are looking for things to meet THEIR needs, and not the best price(unless your outrageously high, still price to compete). When you shop for insurance, you find the best price yes for you, but you also find the one that meets all of your needs. Same concept in selling anything.
Found my niche, now how do I make $$$$?
Time for the sales pitch my friend. You have done all the work to better yourself at something and be greater than everyone else. It is your turn to make a stand in the market!
Determining your sales pitch.
Well, what exactly are you selling? How does it make you different from the rest? Why should I buy from you? Would you buy from you? All things to consider when thinking of your sales pitch. There HAS to be a reason why someone would by from you and not the other, and that reason should NEVER be price. When it is price, your only selling yourself short my friend. And pissing off other people in the process. BE CONFIDENT YOU ARE THE BEST.
Factoring price into sales pitch.
So you have your sales pitch but you have no idea what kind of price to charge that will still sell given all the competition. First things first, how much did you pay for this stock? and how far are you wanting to go with your business? If your stock is very limited and you are not willing to make investments, then i'm sorry to say but your business will not grow. You will level out at a constant rate and eventually will be beat out by someone else, IN TURN MAKING YOU WANT TO LOWER YOUR PRICES.
Lower prices do not do much. Think like your customer;
I have $300 invested into my account. I can buy from someone who doesn't really care and trying to dump stuff off for super cheap. However the selling thread right below it is a reputable member, charges a little more, and their items I know are safe! I think I'll spend the extra 25 cents to save myself from a possible $300 loss.
That being said, you should price competitively in a manner you will still make sales. If you go above and beyond everyone else and are confident you can charge more than the majority then go with it and stick with it. Establish it, the sales won't just come flying in. However, this is where you build customer loyalty. It's like an exponential growth formula, your customer base will grow and grow. The trick is keeping those customers coming back.
If you think you CAN NOT charge more than the rest because your service isn't THAT much exceeded than the rest. Charge the same price because you have the better service anyways, right? Be firm with your prices, and focus on your sales pitch. If you haggle with a customer it shows weakness verses gratitude. It shows that you are not confident with your price and that you do not think your product is really worth that much. That just ruins it, you should just quit. :P Seriously though, stop selling yourself short. However, after negotiation is made. Offer them a few dollars off. This shows GRATITUDE for their purchase and builds customer loyalty some more.
Locking In A Customers First Buy.
For one, I'm sure they have read your thread and know that you hand a professional business. So lets answer any questions they have about it. Answer with descriptive and honest details. All of which point back to why you are better than everyone else. Reassure them that they made the right choice in choosing you.
Purchaser decides they no longer want it for whatever reason. Thats okay! In studies, that customer truly hasn't lost interest up to a week later. You have all that time to remarket, not push, but remarket to them.
Ex. You: I noticed you haven't gotten back to me, is everything okay?
Customer: I just decided I wasn't that interested anymore. I don't have that much money to spare right now.
You: Oh okay, well just to let you know i'm currently doing deals for first time customers to where they can use "discount code here" for their first week of purchasing!
Customer: Oh in that case I think I can get a few million neopoints ;)
However, hold to your discount. Again do not sell yourself short. Your customer buys for a week, thats awesome! If they leave, so what? That's not a loyal customer who deserves your discounts and unbeatable service anyways. Let someone else sell themselves short and lowball themselves. Besides you don't want someone so careless (in terms of who they buy from) possibly endangering your other customers. Not to mention, your price is your price for a reason, have pride in what you do and confidence.
Customer Retention (Customer Loyalty);
Since this is a forum, we are limited to how much we can do as far as automatic triggers to help keep customers within your store and to keep them coming back. Tracking and all that jazz. So we can keep it to the basics.
1. Sincerity
2. Incentive
3. Up-Sell & Cross-Sell
Sincerity
How do you treat your customers? You expect that they respect you since they are making a purchase from you. YOU ALWAYS RESPECT YOUR BUYER! They are doing you a favor in the first place by purchasing from you... You MUST respect your buyers, and mean it!
Following up on customers transactions/ inquiries.
Talk to your customers. Let them know that you care and that their business was greatly appreciated. This does not mean annoy your customer to buy. When you follow up with your customer you should NEVER mention buying again unless they bring it up to you. Believe it or not, a lot of your customers just want a shopping buddy :) You should ask them how the transaction went security wise. Possibly to give you feedback to improve your business. Ask them how they are doing with their new purchase. All signs that you care about THEM and NOT THEIR WALLET.
Compensate even if it is not your fault.
I do not mean refund, nor do i mean compensate for someone being ignorant to your advice either. However if you customer made a purchase from you and some time down the road lost their account. OFFER THEM A NEW ONE FOR FREE or at discounted rates.
Why!? Because you care. Thats why!
Besides the fact, if your customer gets frozen, they are no longer going to buy because all of their assets are gone! Sacrifice a little to gain a whole lot.
Incentive
Did you know for most payment gateways you are capable of editing your default receipt template? PERSONALISE THIS! This helps with being sincere with your customers as it shows you put time and effort into your work. It also gives you a whole new realm of customer retention ideas. Just an FYI.
Customer Loyalty Programs (Cashback)
Once your business is established enough, give back to your customers and the ones that got you there! Give them motive to keep coming back.
Time Framed Discounts
So you made the sale, who knows if they will be back. Why not give them a reason to come back sooner? Time limited discounts are a great way to keep customers coming back. As they want to use the discount and save money before its too late! On the opposite note, for being a loyal customer, you get better prices on products.
Permanent Discounts
Okay so you have a long term customer that you just enjoy dearly and don't want to charge them as much as everyone else. These are you VIP customers and big spenders. Offer them permanent discounts so your big spenders don't become someone else's big spenders! It also gives your other customers something to look forward to.
Cross Sell & Up Selling Tactics
Up sell is a tactic in which you have a customer make an inquiry. You then accept their inquiry and willing to go through with purchase however you have a deal you want to offer them. If they buy this other product you have RIGHT NOW they will save 10% on both products.
This is good for both parties, seller because your customer spends more, buyer you are getting more for less.
If they deny it then just go along with regular transaction, if they accept it. BANG! You successfully promoted your first Up Sell.
When you Cross Sell products you are selling a package! This tactic is done a lot around here, however it is not done correctly and in turn only hurts themselves and devalues their own items. Listing and showing bulk deals are not cross sells! Cross sells are triggered by every customer differently depending on the item they are interested in.
For example, I'm selling all(5) anagram swords separately for 17.50 each. In addition to this I'm selling Main Accounts and Pure Neopoints.
Two cross sell opportunities, if not more!
Ex 1. Customer PM's me to purchase one of any of the anagram swords. Luckily for them I'm doing a promotion right now. If they buy all 5 of them RIGHT NOW they will save $20 off their purchase!
Ex 2. Customer PM's me to purchase a main account or pure neopoints. (one or the other) Again, another lucky customer because right now i'm doing this special deal if you buy a main account/ pure with your pure/ main account you can knock off 30 cents per million!
To successfully cross sell or up sell you do not advertise it on your main page, you more so personalize it once inquiries are made and make SMART RECOMMENDATIONS.
Examples of successful targeted-niche campaigns;
zxzero ([Only registered and activated users can see links])
Accelerator ([Only registered and activated users can see links])
learningtoneopet1 ([Only registered and activated users can see links])
lmp ([Only registered and activated users can see links]!)
Examples of successful non-targeted campaigns;
Bettser ([Only registered and activated users can see links]!-))
People may be wondering; "Why would you tell other people how to sell? Your creating direct competition with yourself?!?"
Many sellers and buyers alike do not understand some of the terminology and the real logistics behind running your own business and how to GROW verses MAINTAINING.
Before we begin;
What exactly defines a business?
It is not a business title, I can tell you that much. ANYTIME you ACCEPT money for YOUR SERVICES, you are conducting business.
Okay, so I'm technically running a business. Why does that matter?
Because, this IS a business. You do not buy from unprofessional business's do you? You have another person's hard earned cash in your possession, they are putting their TRUST in you. You do not trust unprofessional business's right?
So why all professionalism on the forums?
Uh hello! Any successful business knows that forums are one of your #1 marketing tools. If setup properly, you can market and maintain a full forum based ecommerce store FOR FREE. Yes, you have an opportunity to run a business FOR FREE! ANDDDD all of your visitors are already targeted traffic customers! No marketing really needed.
You do not need an official website to run a legitimate and official business. With creating a website, keep in mind your competition. No one started making piles of money over night. Neither will you, put in the work to MARKET and RETAIN your customers.
Let's begin with these terms;
Growth vs. Maintaining
Growth is self explanatory. When you work on your business growth you are working its overall success. Maintaining is when you setup your shop, and do not care about your growth. Maintaining is general lower prices than others, VERY limited stock, they are constantly "chasing stock". Meaning they capture the payment, then "chase" for the stock. This is not how your business can grow if you're too worried about the quick money.
Targeted vs. Non-Targeted Traffic
Targeted traffic is traffic that you make the effort to reach out to. This traffic are customers who have the highest conversion rates. These customers are the ones who were already interested in what you are selling. When you get non-targeted traffic this would be spamming forums, ranking for generic non-niche specific keywords. Ex; Neopets vs Buy Neopoints
Generally your supermarkets and convenient stores are non-targeted. They don't really care, they have a little bit of everything for everyone.
ROI (Return on Investment) vs Profits
This is something that is very misconcepted with Profits. If you make a purchase with CASH (no loans or debts) you are profiting from the very get go as long as you are selling your product, and your cost of running business is less than these factors; what you are making and cost of marketing. However, in a more logical standpoint your still in the hole because you made that investment on stock. This is called ROI. Both of these fall hand and hand, if your profits are minimal, it will take your longer to reach your ROI. Meaning if it takes you whole month to make your money back, then whats the point? RAISE YOUR PRICES. Use targeted traffic to get customer to PAY THESE PRICES.
Price vs Profits
A very common rule in the ecommerce rule is marking up your items 300% of what the wholesale cost was. This is THE ONLY way to make money and make it worth it.
If you buy 1,000 units of stock for $1 and then turn around and sell for $1.50 your profits are MINIMALISTIC. and your ROI may not be met to meet your needs. You now have to FIND & CONVINCE 1,000 customers to purchase your product, and that its better than everyone elses. For all that time and money you only made 500 dollars from 1,000 transactions. Thats HORRIBLE.
By keeping it 300%, in theory, for every $1,000 spent on stock you will make $2,000 over your ROI. If you bought it all with cash you made $3,000 Profit with a $1,000 ROI.
Finding your niche & setting up your sales pitch;
So you wanna start selling, but everyone and their brother here sells. Well you have to be unique, what sets you apart from the rest? This is going to be your sales pitch. If you are in a specific niche, and provide the best services in that niche, you can charge more than the underdog.
Why is that?
Because customers want quality and reliability. This is the first step in maintaining customer loyalty. Why do you only buy certain brands of clothes, food, accessories? It's the same concept. Psychology at its finest. When you buy things for yourself, or if others buy things for you. You want them/yourself to buy something with quality.
Why is that?
Because you think you deserve the best, that's why. And so do your customers. So give them THE BEST.
Uh |2eap, this doesn't help me figure out what i'm going to sell...?
Sure it does, are you the best at something? Do you consider yourself the best at something? Do you want to become the best at something? What can you do that stands out from the rest?
This is your niche, if you specialize in neopoints... sell neopoints. Studies have shown, customers don't tend to shop around anymore once they have found a quality and reliable service. If you try to do too much, where's the quality?
|2eap, I'm not really the best at anything bro. What can I do?
Work towards becoming the best. Besides you most likely have other qualities that others do not have. For example my instant delivery services I have started up. A form of targeted traffic for me would be foreign members. Members who are online when cK is the most inactive. These customers have to wait a day or more to get responses from sellers. So for a slight upcharge, they can rid that burden and enjoy their purchases like everyone else in the same timly manner that everyone else gets. All of our customers deserve the same treatment from the start. No favorites.
So theres my example, can you figure out your own niche now? Maybe your foreign and online during those hours and can deliver at those times. You can then undercut me targetting the same traffic. Keeping in mind though, every action has an equal and opposite reaction. If you lowball another seller, who says they won't low ball you back until it's a stalemate? That is NOT how to conduct business. As mentioned before your customers are looking for things to meet THEIR needs, and not the best price(unless your outrageously high, still price to compete). When you shop for insurance, you find the best price yes for you, but you also find the one that meets all of your needs. Same concept in selling anything.
Found my niche, now how do I make $$$$?
Time for the sales pitch my friend. You have done all the work to better yourself at something and be greater than everyone else. It is your turn to make a stand in the market!
Determining your sales pitch.
Well, what exactly are you selling? How does it make you different from the rest? Why should I buy from you? Would you buy from you? All things to consider when thinking of your sales pitch. There HAS to be a reason why someone would by from you and not the other, and that reason should NEVER be price. When it is price, your only selling yourself short my friend. And pissing off other people in the process. BE CONFIDENT YOU ARE THE BEST.
Factoring price into sales pitch.
So you have your sales pitch but you have no idea what kind of price to charge that will still sell given all the competition. First things first, how much did you pay for this stock? and how far are you wanting to go with your business? If your stock is very limited and you are not willing to make investments, then i'm sorry to say but your business will not grow. You will level out at a constant rate and eventually will be beat out by someone else, IN TURN MAKING YOU WANT TO LOWER YOUR PRICES.
Lower prices do not do much. Think like your customer;
I have $300 invested into my account. I can buy from someone who doesn't really care and trying to dump stuff off for super cheap. However the selling thread right below it is a reputable member, charges a little more, and their items I know are safe! I think I'll spend the extra 25 cents to save myself from a possible $300 loss.
That being said, you should price competitively in a manner you will still make sales. If you go above and beyond everyone else and are confident you can charge more than the majority then go with it and stick with it. Establish it, the sales won't just come flying in. However, this is where you build customer loyalty. It's like an exponential growth formula, your customer base will grow and grow. The trick is keeping those customers coming back.
If you think you CAN NOT charge more than the rest because your service isn't THAT much exceeded than the rest. Charge the same price because you have the better service anyways, right? Be firm with your prices, and focus on your sales pitch. If you haggle with a customer it shows weakness verses gratitude. It shows that you are not confident with your price and that you do not think your product is really worth that much. That just ruins it, you should just quit. :P Seriously though, stop selling yourself short. However, after negotiation is made. Offer them a few dollars off. This shows GRATITUDE for their purchase and builds customer loyalty some more.
Locking In A Customers First Buy.
For one, I'm sure they have read your thread and know that you hand a professional business. So lets answer any questions they have about it. Answer with descriptive and honest details. All of which point back to why you are better than everyone else. Reassure them that they made the right choice in choosing you.
Purchaser decides they no longer want it for whatever reason. Thats okay! In studies, that customer truly hasn't lost interest up to a week later. You have all that time to remarket, not push, but remarket to them.
Ex. You: I noticed you haven't gotten back to me, is everything okay?
Customer: I just decided I wasn't that interested anymore. I don't have that much money to spare right now.
You: Oh okay, well just to let you know i'm currently doing deals for first time customers to where they can use "discount code here" for their first week of purchasing!
Customer: Oh in that case I think I can get a few million neopoints ;)
However, hold to your discount. Again do not sell yourself short. Your customer buys for a week, thats awesome! If they leave, so what? That's not a loyal customer who deserves your discounts and unbeatable service anyways. Let someone else sell themselves short and lowball themselves. Besides you don't want someone so careless (in terms of who they buy from) possibly endangering your other customers. Not to mention, your price is your price for a reason, have pride in what you do and confidence.
Customer Retention (Customer Loyalty);
Since this is a forum, we are limited to how much we can do as far as automatic triggers to help keep customers within your store and to keep them coming back. Tracking and all that jazz. So we can keep it to the basics.
1. Sincerity
2. Incentive
3. Up-Sell & Cross-Sell
Sincerity
How do you treat your customers? You expect that they respect you since they are making a purchase from you. YOU ALWAYS RESPECT YOUR BUYER! They are doing you a favor in the first place by purchasing from you... You MUST respect your buyers, and mean it!
Following up on customers transactions/ inquiries.
Talk to your customers. Let them know that you care and that their business was greatly appreciated. This does not mean annoy your customer to buy. When you follow up with your customer you should NEVER mention buying again unless they bring it up to you. Believe it or not, a lot of your customers just want a shopping buddy :) You should ask them how the transaction went security wise. Possibly to give you feedback to improve your business. Ask them how they are doing with their new purchase. All signs that you care about THEM and NOT THEIR WALLET.
Compensate even if it is not your fault.
I do not mean refund, nor do i mean compensate for someone being ignorant to your advice either. However if you customer made a purchase from you and some time down the road lost their account. OFFER THEM A NEW ONE FOR FREE or at discounted rates.
Why!? Because you care. Thats why!
Besides the fact, if your customer gets frozen, they are no longer going to buy because all of their assets are gone! Sacrifice a little to gain a whole lot.
Incentive
Did you know for most payment gateways you are capable of editing your default receipt template? PERSONALISE THIS! This helps with being sincere with your customers as it shows you put time and effort into your work. It also gives you a whole new realm of customer retention ideas. Just an FYI.
Customer Loyalty Programs (Cashback)
Once your business is established enough, give back to your customers and the ones that got you there! Give them motive to keep coming back.
Time Framed Discounts
So you made the sale, who knows if they will be back. Why not give them a reason to come back sooner? Time limited discounts are a great way to keep customers coming back. As they want to use the discount and save money before its too late! On the opposite note, for being a loyal customer, you get better prices on products.
Permanent Discounts
Okay so you have a long term customer that you just enjoy dearly and don't want to charge them as much as everyone else. These are you VIP customers and big spenders. Offer them permanent discounts so your big spenders don't become someone else's big spenders! It also gives your other customers something to look forward to.
Cross Sell & Up Selling Tactics
Up sell is a tactic in which you have a customer make an inquiry. You then accept their inquiry and willing to go through with purchase however you have a deal you want to offer them. If they buy this other product you have RIGHT NOW they will save 10% on both products.
This is good for both parties, seller because your customer spends more, buyer you are getting more for less.
If they deny it then just go along with regular transaction, if they accept it. BANG! You successfully promoted your first Up Sell.
When you Cross Sell products you are selling a package! This tactic is done a lot around here, however it is not done correctly and in turn only hurts themselves and devalues their own items. Listing and showing bulk deals are not cross sells! Cross sells are triggered by every customer differently depending on the item they are interested in.
For example, I'm selling all(5) anagram swords separately for 17.50 each. In addition to this I'm selling Main Accounts and Pure Neopoints.
Two cross sell opportunities, if not more!
Ex 1. Customer PM's me to purchase one of any of the anagram swords. Luckily for them I'm doing a promotion right now. If they buy all 5 of them RIGHT NOW they will save $20 off their purchase!
Ex 2. Customer PM's me to purchase a main account or pure neopoints. (one or the other) Again, another lucky customer because right now i'm doing this special deal if you buy a main account/ pure with your pure/ main account you can knock off 30 cents per million!
To successfully cross sell or up sell you do not advertise it on your main page, you more so personalize it once inquiries are made and make SMART RECOMMENDATIONS.
Examples of successful targeted-niche campaigns;
zxzero ([Only registered and activated users can see links])
Accelerator ([Only registered and activated users can see links])
learningtoneopet1 ([Only registered and activated users can see links])
lmp ([Only registered and activated users can see links]!)
Examples of successful non-targeted campaigns;
Bettser ([Only registered and activated users can see links]!-))